E7-5

please show all calculations

Instructions mpute an estimate of the ending balance of account nt shortages. Assume that all sales are made on account. T accounts receivable from customers that should appear in the ledger and any apparent shortag $9.5 (L02) EXCEL (Recording Sales Gross and Net) On June 3. Arnold Company sold to Chester Company merchandise ng a sale price of ,with terms of 2/10, n/60. fo.b, shinnine naint An invoice totaling 590, terms n/30, was recen by Chester on June 8 from John Booth Tran jurn booth transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company Instructions (a) Prepare journal entries on the Ar Denare journal entries on the Arnold Company books to record all the events noted above under each of the following bases (1) Sales and receivables are entered at gross selling price. (2) Sales and receivables are entered at net of cash discounts. (b) Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29